398 16th St Merced, CA 95340-4824

Property Details for 398 16th St

Lot size

1.60 lot acres

Property type

Commercial real estate

APN

031-360-014

APU

31360014

Description

This exceptional investment opportunity presents a fee-simple interest in a 9,180 square foot Family Dollar building situated on a 0.93-acre lot in Merced, CA. The property boasts a highly desirable location on West 16th Street, a major thoroughfare with 22,300 cars passing daily, and enjoys close proximity to other high-volume retailers such as In-N-Out Burger and Starbucks. Built in 2013, this single-tenant NNN-leased property features a long-term lease with Family Dollar, Inc., extending until June 30, 2028, with three 5-year renewal options and 10% rent bumps every five years. The current lease commenced March 21, 2013, and the property enjoys 100% occupancy, generating a substantial net operating income (NOI) of $213,162, representing a 7.00% cap rate. The asking price is $3,045,000, or $331.70 per square foot. The property's strong performance is underscored by Family Dollar's national ranking in the 98th percentile for pedestrian traffic. The location benefits from a robust demographic profile, with an average household income of $76,000 within a 5-mile radius and a population of 110,000 within the same area. The property is zoned for commercial use and has the APN 031-360-078-000. This investment offers a compelling combination of strong tenant performance, a secure lease structure, and a prime location in a thriving retail corridor.